Huang v Wang

In *Huang v Wang*, the applicants sought leave under section 237 of the *Corporations Act 2001* (Cth) to bring a statutory derivative action on behalf of a company. The respondents opposed the application. The matter came before the Court of Appeal of New South Wales.

The primary legal issues before the Court were whether granting leave to bring the derivative action would be in the company's best interests, and whether the applicants had demonstrated that the company had the capacity to do equity, particularly in circumstances where a constructive trust was sought.

The Court considered the principles governing applications for leave to bring a statutory derivative action, emphasising the broad discretion vested in the court under section 237. It was held that the capacity of the company to do equity is a relevant consideration when determining whether it is in the company's best interests to grant leave, especially when the relief sought involves the imposition of a constructive trust. The Court found that the evidence did not sufficiently establish that the company could, in fact, do equity, which weighed against granting leave.

The appeal was dismissed.